This paper studies the work incentive effects of the so-called Self Reliance
program (SR), some sort of a training program within the welfare system in
Korea [the Minimum Living Standard (MLS) program]. In contrast to the
intended program goals, our quasi-experimental approach demonstrates the
following: (i) exits from poverty are found to be few, and the program
replaces work opportunities with welfare dependence, (ii) future employment
probabilities rather fall, and (iii) these problems arise because the negative
work incentive effects from the MLS program dominate the positive effects
from the SR program. Our results imply that improving the SR program
without revising the MLS program would not boost exists from welfare
dependence and poverty.